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“Forced sale” Valuations not enough to prove insolvency |
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by
LawDotNews
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Published
2010/02/03 12:00:00 AM
(Viewed
659
times) |
Sequestrating a debtor’s estate is a legitimate – and often powerful - method of debt-collection.
But, held the High Court recently, in proving that a debtor is factually insolvent, you cannot rely on a “forced sale” valuation of the debtor’s assets – they must be shown at “fair market value”. Make sure that your valuer is briefed accordingly, or your application will fail!
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